New Gulf tranche of $10b will boost Egypt’s economy: UAE daily

ABU DHABI, 6th February, 2015 (WAM)–Egypt’s allies in the Gulf have reinforced their support for President Abdul Fattah Al Sissi’s government with a new commitment to deposit $10 billion (Dh36.78 billion) in Egypt, giving its economy valuable liquidity as it prepares for an important investor summit next month.

In 2013, the UAE, Saudi Arabia and Kuwait had put more than $12 billion into Egypt in the immediate aftermath of Al Sissi’s accession to office. “This new tranche is a clear indication of the strength of the Gulf states’ support for the new Egyptian government as Al Sissi re-imposes normal government and social stability after the turmoil of the revolution of 2011, followed by the chaos of president Mohammad Mursi’s time in power,” said English language local daily, Gulf News, in its editorial on Friday.

It added that Egypt is a central part of the Arab world and historically it has played a crucial part in defining Arab politics. “Therefore, at a time of great chaos with Syria and Iraq going up in flames and Libya split in two the Gulf wants to help Al Sissi re-develop Egypt’s natural stature in the region”, the paper said.

Al Sissi’s government has developed $20 billion worth of 30 large projects for which he is seeking investment. Many of these are in the private sector.

It underlined that the Gulf liquidity will calm the markets in Egypt and make the climate more favourable for rational investment. Al Sissi is trying to kick-start Egypt’s economy with mega-projects and will expect 4 per cent growth in 2015 to liberalise Egypt’s notoriously difficult regulatory environment to allow local and foreign entrepreneurs to flourish.

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SOURCE: Wam